Ann: Nechalacho Site Update and Funding Agreement for Ore Sorter, page-21

Hi Sillysolly,

I think you are getting just a tad over excited with your statement "Our processes are revolutionary within the rare earth mining industry", as REE ore benefaction by ore sorting is hardly revolutionary!

Looking into the detail of the announcement the purpose of the C$1.26m loan is to "demonstrate the environmental, technical, and economic advantages of single step sensor-based sorting of rare earth ore to produce a value added mixed rare earth concentrate in the NWT." So it is basically funding an ore sorting trial and is not intended to be used as a contribution to the forecast ore sorting CAPEX of A$3.7m.

For me the important thing in this announcement is that it demonstrates the ongoing support that is being given to the REE industry in Canada by all levels of government from federally funded initiatives such as CanNor and state funded initatives such as SRC RE seperation plant in Saskatoon.

Compare this support to that offered by the Australian government to the slew of aussie REE projects desperate for secure funding. The NAIF is held out as encouragement, but it's funding is generally so qualified by requirements for co-financing and pre-offtakes that it is seldom tapped. Add to this the lack of co-ordination between levels of government and departments and you end up with situations such as NTU (held) found itself in, snared between the ATO and AusIndustry over R&D rebates, which almost sent it broke and ended up forcing it into highly dilutive capital raisings and structured loans.

Just imagine what encouragement Australian govenrments would provide to the aussie REE industry if it committed to building an REE seperation and research facility in Kalgoorie of Port Headland... Our bureaucrats need to watch and learn!